Apple's first carrier partner remains its strongest, as AT&amp;T revealed on Thursday that it activated a record 7.6 million iPhones over the holiday 2011 quarter.

The 7.6 million iPhones activated on AT&amp;T represented 20.5 percent of the total 37 million iPhones Apple sold in its own record quarter, the results of which were announced on Tuesday. AT&amp;T followed up Thursday with its quarterly earnings, in which consolidated revenues were up $1.1 billion to $32.5 billion.

The iPhone was dominant at AT&amp;T, accounting for 80.8 percent of the 9.4 million smartphones sold through the carrier.In the previous quarter, the iPhone represented 56 percent of AT&amp;T's smartphone activations with 2.7 million units.
The wireless carrier revealed that a majority of the 7.6 million iPhones it activated in the quarter were the iPhone 4S. That aligns with what Apple executives said on Tuesday, when they revealed the latest model of their smartphone was by far the best selling.

The 7.6 million iPhones activated on AT&amp;T also easily bested the 4.2 million iPhones Verizon activated during the same three-month span. The iPhone accounted for 55 percent of smartphone sales at Verizon.

AT&amp;T also said it was a strong quarter for its Android-based handsets, as Android smartphones also set a new record over the holidays. Specific sales figures for Android and other platforms weren't provided, but would remain among the remaining 1.8 million non-iPhone smartphones sold in the three-month period. Total smartphone sales were the best ever seen at AT&amp;T, blowing past its previous quarterly record by 50 percent.

The nation's second-largest wireless carrier added a total of 2.5 million wireless subscribers in the quarter. That means most of the 7.6 million iPhones activated over the holidays were to existing AT&amp;T subscribers.

AT&amp;T saw 10 percent growth in wireless revenues, and 19.4 percent growth in wireless data revenues. It said that 82 percent of its postpaid sales were smartphones.

Computing devices, including the iPad and other tablets, reached 571,000. That was the company's best-ever quarter, and the carrier now has 5.1 million subscribers with those 3G-connected devices, up almost 70 percent from a year ago.

1) Another 80% figure is how many more iPhones AT&T sold than did Verizon. AT&T and Verizon were on "equal" footing with the release of the iPhone 4S yet AT&T managed to sell 7.6 million iPhones compared to Verizon's 4.2 million iPhones. Granted, AT&T also has the iPhone 3GS to sell but there is no way that accounts for such a wide disparity. So what happened to everything jumping ship from AT&T as soon as Verizon gets the iPhone?

2) Why didn't AI report on AT&T's $6.7 billion loss for the quarter. I understand the $4 billion it had to pay T-Mobile USA but what about the $2.7 billion? Where did that come from?

This bot has been removed from circulation due to a malfunctioning morality chip.

1) Another 80% figure is how many more iPhones AT&T sold than did Verizon. AT&T and Verizon were on "equal" footing with the release of the iPhone 4S yet AT&T managed to sell 7.6 million iPhones compared to Verizon's 4.2 million iPhones. Granted, AT&T also has the iPhone 3GS to sell but there is no way that accounts for such a wide disparity. So what happened to everything jumping ship from AT&T as soon as Verizon gets the iPhone?

2) Why didn't AI report on AT&T's $6.7 billion loss for the quarter. I understand the $4 billion it had to pay T-Mobile USA but what about the $2.7 billion? Where did that come from?

I am not intimately familiar with AT&T's P&L, but keep in mind that phone companies pay for the phones they sell up front and then recover the money over the life of the contract.

If AT&T bought 7.5 M iPhones from Apple at $650, and then sold them for $200 each (plus contract), that would mean a $4.9 B expense but $1.5 B in revenue - for a $3.4 B deficit. I don't, however, know if their accounting would count that as a loss or if they would actually consider it a pre-paid, accrued expense.

"I'm way over my head when it comes to technical issues like this"Gatorguy 5/31/13

1) Another 80% figure is how many more iPhones AT&T sold than did Verizon. AT&T and Verizon were on "equal" footing with the release of the iPhone 4S yet AT&T managed to sell 7.6 million iPhones compared to Verizon's 4.2 million iPhones. Granted, AT&T also has the iPhone 3GS to sell but there is no way that accounts for such a wide disparity. So what happened to everything jumping ship from AT&T as soon as Verizon gets the iPhone?

2) Why didn't AI report on AT&T's $6.7 billion loss for the quarter. I understand the $4 billion it had to pay T-Mobile USA but what about the $2.7 billion? Where did that come from?

On the first point I know a few people that read up on the differences wanted the voice and data at the same time not there at the start with Verizon. This may have been one reason but it probably doesn't explain it all since few people understand enough about that not to have been fooled by Verizon's marketing.

From Apple ][ - to new Mac Pro I've owned them all.Long on AAPL so biased"Google doesn't sell you anything, Google just sells you!"

Apple controls iPhone advertising, so AT&T can't do anything without their say-so.

And it certainly doesn't seem they have to do anything anyway, what with 80% marketshare and not a peep out of the carrier.

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Originally Posted by thegreatbosan

Just wondering if Slappy is still crying after all the Slapping he is getting

No, it's "I was surprised by the numbers", "there must be some mistake", "Apple is obviously faking these numbers and an inquiry will expose them and cause them to pay trillions in damages" or something along those lines.

Apple thinks of mobile operators little more than dumb pipes. They would never buy a telephone company.

It would be like Sony buying PG&E.

Apple's corporate acquisitions are highly strategic and aimed to improve a large number of their customers, like acquiring Siri to build the next generation voice command system (which can be used in multiple languages and several countries in its current beta stage) or Anobit to improve flash memory performance.

1) Another 80% figure is how many more iPhones AT&T sold than did Verizon. AT&T and Verizon were on "equal" footing with the release of the iPhone 4S yet AT&T managed to sell 7.6 million iPhones compared to Verizon's 4.2 million iPhones. Granted, AT&T also has the iPhone 3GS to sell but there is no way that accounts for such a wide disparity. So what happened to everything jumping ship from AT&T as soon as Verizon gets the iPhone?

2) Why didn't AI report on AT&T's $6.7 billion loss for the quarter. I understand the $4 billion it had to pay T-Mobile USA but what about the $2.7 billion? Where did that come from?

First, no one ever said everybody would leave. Second if you're have a grandfathered unlimited data plan why would one leave? They effectively have you signed for life.

"Few things are harder to put up with than the annoyance of a good example" Mark Twain"Just because something is deemed the law doesn't make it just" - SolipsismX

Second if you're have a grandfathered unlimited data plan why would one leave?

Because AT&T has begun arbitrarily and without any explanation therefore throttling the aforementioned "unlimited" plans to slower than hard-line dial up if you fall within their criteria of "we want to throttle you".

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They effectively have you signed for life.

Or you could go to Sprint where they have "unlimited" data that doesn't get throttled or Verizon where the service both physical and customer are infinitely better.

1) Another 80% figure is how many more iPhones AT&T sold than did Verizon. AT&T and Verizon were on "equal" footing with the release of the iPhone 4S yet AT&T managed to sell 7.6 million iPhones compared to Verizon's 4.2 million iPhones. Granted, AT&T also has the iPhone 3GS to sell but there is no way that accounts for such a wide disparity. So what happened to everything jumping ship from AT&T as soon as Verizon gets the iPhone?

2) Why didn't AI report on AT&T's $6.7 billion loss for the quarter. I understand the $4 billion it had to pay T-Mobile USA but what about the $2.7 billion? Where did that come from?

I don't follow AT&T so this is just a guess, but I would imagine that AT&T are not "standing still" in terms of expanding and upgrading their infrastructure so maybe that's where the "missing" 2.7 billion is, no? Staying on top in a fluid marketplace usually requires a huge and continuing investment of $$$$. That would be my guess anyway.

Apple, bigger than Google, √ ..... bigger than Microsoft, √ The universe is unfolding as it should. Thanks, Apple.

1) Another 80% figure is how many more iPhones AT&T sold than did Verizon. AT&T and Verizon were on "equal" footing with the release of the iPhone 4S yet AT&T managed to sell 7.6 million iPhones compared to Verizon's 4.2 million iPhones. Granted, AT&T also has the iPhone 3GS to sell but there is no way that accounts for such a wide disparity. So what happened to everything jumping ship from AT&T as soon as Verizon gets the iPhone?

2) Why didn't AI report on AT&T's $6.7 billion loss for the quarter. I understand the $4 billion it had to pay T-Mobile USA but what about the $2.7 billion? Where did that come from?

Verizon does not have the 3GS, not the whole difference but it does help AT&Ts numbers.

I must admit that this quarterly report took everyone by surprise. I concede this quarter win for Apple. Of course the holidays may have given Apple a temporary push up the charts. Still mark my words. There are over 700,000 daily Android activations is no laughing matter. As I have stated before 2012, will be the year Android will surpass iOS by a huge margin. It's inevitable. Apple is not an immovable object, and will move down the single digit share. Android is the irresistible force that has just begun it's runaway growth and 98% market share.

Because AT&T has begun arbitrarily and without any explanation therefore throttling the aforementioned "unlimited" plans to slower than hard-line dial up if you fall within their criteria of "we want to throttle you".

Or you could go to Sprint where they have "unlimited" data that doesn't get throttled or Verizon where the service both physical and customer are infinitely better.

Show me where it was said EVERYBODY would leave.

Throttling sucks but I can understand why they do it and technically its still unlimited data, there's no guarantee of what speed you'd get said data.

Sprints data speeds are a joke. A great many have expressed their regret of switching.

"Few things are harder to put up with than the annoyance of a good example" Mark Twain"Just because something is deemed the law doesn't make it just" - SolipsismX

Because AT&T has begun arbitrarily and without any explanation therefore throttling the aforementioned "unlimited" plans to slower than hard-line dial up if you fall within their criteria of "we want to throttle you".

Or you could go to Sprint where they have "unlimited" data that doesn't get throttled or Verizon where the service both physical and customer are infinitely better.

This applies to me as my entire account is suffering.

I have 4 grandfathered unlimited data plans across two 4S , a 4 , and a 3GS.

AT&T began throttling one that was using 8 GB per month. Then shortly after they hit one that was in the 5 - 6 range...

As of this month, they are throttling myself and all my other lines at the threshold of 2 GB!!!

So by their own act of throttling, they've changed what the "top 5%" covers, bringing it down from the double digits all the way to 2 GB this month.

It's the most ludicrous situation imaginable. I pay $30/mon for Unlimited Data, yet get capped at 2 GB. Whereas they have a 3 GB plan, for $30/mon. I can't even wrap my head around how ridiculous it is. They are trying to bully me out of my unlimited plan, as they want to eradicate them from their network. I would at least have a shred of respect for them if they had said, "you can upgrade to 4S, but you HAVE to choose a new data plan" I wouldn't have liked it but at least it would have been a respectable policy and one that doesn't try to drive their customers in a particular direction via punishment.

1) Another 80% figure is how many more iPhones AT&T sold than did Verizon. AT&T and Verizon were on "equal" footing with the release of the iPhone 4S yet AT&T managed to sell 7.6 million iPhones compared to Verizon's 4.2 million iPhones. Granted, AT&T also has the iPhone 3GS to sell but there is no way that accounts for such a wide disparity. So what happened to everything jumping ship from AT&T as soon as Verizon gets the iPhone?

2) Why didn't AI report on AT&T's $6.7 billion loss for the quarter. I understand the $4 billion it had to pay T-Mobile USA but what about the $2.7 billion? Where did that come from?

I'll state up front that I am a Verizon customer and will never again be an ATT customer (burned, screwed, and lied to too many times). That said, I never subscribed to the "jumping ship once Verizon gets the iPhone" theories. Sure, there was going to be leakage; but I never thought there's be any sort of wholesale abandonment. Americans are too lazy to go through the trouble.

But a couple of stats I would be curious to see... ATT said that "a majority" of the iPhones they sold were 4S. Well, 51% is a majority. So we really don't know if a large part of their iPhones was the older model.

More importantly, it appears that a significant majority of their iPhone sales were to "recycled" customers (ie, upgraders). So assuming that a lot of those old iPhones leave the ATT network, their net increase in iPhone users/contracts could be a much lower number than 7.6 million (although a good number of those upgrades are probably also coming from former Android users). And in the absence of data to verify, I assume that a much higher percentage of the iPhones Verizon sold are a net increase in iPhone users since no existing Verizon iPhone user would be eligible for an upgrade bonus (but some Andoid users would be).

AT&T began throttling one that was using 8 GB per month. Then shortly after they hit one that was in the 5 - 6 range...

And what the heck are you doing to use that much data?

I'd agree that they shouldn't to full-speed for the first 2GB and throttle after that. Hell, if I were ATT I would just terminate your contract. But, it likely makes more sense to throttle based on your past 30-day usage to make things more consistent throughout the month... and the floor should be around 150kBPS.

The 2GB limit is lower than it should be, but I understand it. If you were using 8GB though... you are the problem, and punitive action should be expected.

Wasn't it Steve Jobs who wanted to start his own carrier so he (Apple) wouldn't be held captive by a mobile phone company?

Yes, but that doesn't mean it is a good investment or anything. He could have been making a pie in the sky type of statement. One big problem is that you have to sell competing devices - something that Apple would never allow. I don't even think the FTC would allow such a thing to happen either for competition reasons.

I'd agree that they shouldn't to full-speed for the first 2GB and throttle after that. Hell, if I were ATT I would just terminate your contract. But, it likely makes more sense to throttle based on your past 30-day usage to make things more consistent throughout the month... and the floor should be around 150kBPS.

The 2GB limit is lower than it should be, but I understand it. If you were using 8GB though... you are the problem, and punitive action should be expected.

You're out of your mind. They offered the unlimited plan. They didn't tell me how to use it, nor should they. And who are you to say 2 GB per month is reasonable and 6 or 8 is not? One of my lines is my brothers who works in videography and (shocker) uses his mobile phone and fast data connection, for all different aspects of his business.

If you actually use the device you're paying for, for more than just games and email, you'd know. There are dozens of powerful apps out there, that use a hefty amount of data to provide functionality and services. Ands that just for work. Normal things such as Netflix and Streamtome, and any other video streaming app will use up your 2 GB allowance in a day.

You're out of your mind. They offered the unlimited plan. They didn't tell me how to use it, nor should they. And who are you to say 2 GB per month is reasonable and 6 or 8 is not? One of my lines is my brothers who works in videography and (shocker) uses his mobile phone and fast data connection, for all different aspects of his business.

If you actually use the device you're paying for, for more than just games and email, you'd know. There are dozens of powerful apps out there, that use a hefty amount of data to provide functionality and services. Ands that just for work. Normal things such as Netflix and Streamtome, and any other video streaming app will use up your 2 GB allowance in a day.

Your attitude is completely wrong, and so is AT&T.

Netflix won't use 2GBs of data in one day. Average consumption of Netflix solely on 3G will consume about 3GBs of data in a month. Unless you're a Netflix addicts.

Generally speaking, people who use more than 4GBs a month are probably tethering their phone and using their unlimited plan as their ISP.

More importantly, it appears that a significant majority of their iPhone sales were to "recycled" customers (ie, upgraders). So assuming that a lot of those old iPhones leave the ATT network, their net increase in iPhone users/contracts could be a much lower number than 7.6 million (although a good number of those upgrades are probably also coming from former Android users). And in the absence of data to verify, I assume that a much higher percentage of the iPhones Verizon sold are a net increase in iPhone users since no existing Verizon iPhone user would be eligible for an upgrade bonus (but some Andoid users would be).

So what was the net increase in active iPhones on each network?

1) I don't think recycled would count as iPhone sales. They are customers to AT&T but surely not sales of the iPhone since they are recycled.

2) We know how many they sold and we know how many phones they activated, right? Do we know how many of them were smartphones? If we do I think there is enough data to determine how many were iPhones.

This bot has been removed from circulation due to a malfunctioning morality chip.

A huge quarter for apple. AT&T were late introducing Android phones, but after 9 months or so to still be at less than 20% does not bode well for Android phones. The manufacturers better pull their finger out if they want to fight back against iOS.

Samsung's commercials are working really well. Time magazine had a great article basically saying with the staggering number of devices Apple is selling it's time for people to quit referring to it as a cult and people why buy Apple products as 'fanboys'.

They offered the unlimited plan. They didn't tell me how to use it, nor should they. And who are you to say 2 GB per month is reasonable and 6 or 8 is not?

(Back) When they offered the unlimited plan, it was inconceivable that people would be able to use more than about 4-5GB with serious OCD usage.

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One of my lines is my brothers who works in videography and (shocker) uses his mobile phone and fast data connection, for all different aspects of his business.

If that is his business, and he is using that much data... by what rights should everybody else be paying more to support him?! You should be able to get a 10GB contract rate with the carriers. In two years, they should be able to support a 40-50GB contract rate at a reasonable price. But, expecting "unlimited" to cover the 1st percentile and the 99th percentile equally and at the same rates is juvenile.